KPDN and MCMC to monitor online ads to protect against unethical traders

The ministry of domestic trade and cost of living (KPDN) is working closely with the Malaysian Communications and Multimedia Commission (MCMC) and internet services providers (ISPs) to monitor business promotions and advertisements involving online transactions. 

Through the collaboration, site blocking has been implemented on 4,324 websites for various offences from 2018 until 15 August 2024, said minister of domestic trade Armizan Mohd Ali. 

These offences include the sale of counterfeit goods, the distribution of pirated works such as films and computer software, as well as direct sales offers that are pyramid schemes, he said in a statement on Facebook. 

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Ongoing monitoring and the enforcement of online transactions, according to the minister, are essential to protect consumers from the manipulation of unethical traders. 

He added that the initiative is in line with the KPDN's efforts to enforce the Consumer Protection Act 1999, the Control of Supplies Act 1961, the Electronic Commerce Act 2006 and the Consumer Protection Regulations 2012. 

Meanwhile, the KPDN has also collaborated with eCommerce platforms to remove 3,408 ads. The ads were removed for offences related to the sale of controlled goods above the gazetted price, counterfeit goods and the use of 'no palm oil' claims on certain products. 

Armizan added that the KPDN will continue to strengthen its cooperation with the Royal Malaysia Police, the MCMC, as well as with the ISPs and eCommerce platform providers to prevent the spread of online transaction offences. 

This is important to protect the interests of consumers and create a healthy and progressive domestic trade environment, said Armizan. 

According to a study in March by Shopee, nearly 70% of Gen Zs in the region consider eCommerce platforms a key entry point for their shopping journey, relying on these platforms to research their purchases.

Despite exploring alternative channels for product research and discovery, a majority (73%) of Gen Zs completed their purchases on eCommerce platforms. Notably, 56% of those who initially engage with social commerce platforms for research prefer returning to eCommerce platforms to complete transactions.

It also found that the preference for eCommerce stems from several key factors, including the wide selection of products (79%), good product quality (77%) and convenient payment methods (59%).

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